HDFC Personal Loan Interest Rates

HDFC Personal Loan Interest Rates

The rate of interest for HDFC Bank personal loans start at 10.25% p.a. Specific interest rate however depends upon the applicant’s credit score, bank’s internal criteria, etc. The bank currently offers personal loans to salaried individuals across government institutions and corporates. Key factors that influence the interest rates of HDFC Bank’s personal loans include type of employer and income of the applicant.

Personal Loan Balance Transfer Interest Rates

Borrowers have the option to transfer their existing personal loan with another bank to HDFC Bank at a lower rate of interest by completing a balance transfer. The balance transfer interest rate for HDFC Bank starts at as low as 10.40% p.a.

Comparison between HDFC Bank and other Banks/NBFCs

A comparison of the key features of a personal loan from HDFC Bank with other top lenders in India is given below:

How to Get Low Interest Rates on HDFC Bank Personal Loan?

The following tips could help you avail a lower rate of interest on your HDFC Bank personal loan:

• Ensure you have minimal debt at the time of loan application
• Pay your credit card bills and loan EMIs on time
• Apply for a loan with your existing banker (e.g. the bank where you have a savings/current account)
• Be a permanent government employee or work with a reputed organisation and maintain a stable employment track record
• Try and maintain a credit score of 750 or higher

Factors Affecting Personal Loan Interest Rates

Some applicant-specific factors affecting personal loan interest rate of HDFC  are given below:

• Credit Score: Credit score indicates your credit behaviour and repayment capacity. A score closer to 900 is considered to be a good score. A high credit score generally leads to the applicant being charged a lower interest rate and vice versa.
• Age of the Applicant: The applicant’s age also affects the interest charged by the lender. For instance, the closer you are to retirement, higher is the interest rate.
• Income: Lenders take into consideration the applicant’s income when deciding the interest rate. Applicants with higher incomes are usually offered a lower rate of interest as they pose a lower risk to the lender. Whereas, applicants with lower annual incomes may be charged a higher rate of interest.
• Employment Details: Lenders may offer personal loans at a lower interest rate if the applicant works with a reputed organisation. Also, the interest rate may vary with the nature of employment of the applicant- whether he/she is self-employed or salaried.
• Relationship with the bank: In case you have an existing relationship with the bank, you may be charged a lower rate of interest at the time of applying for a personal loan.

FAQs

Q. How is interest payable by a particular applicant determined?

The interest charged by HDFC for its personal loans depends upon several factors like the loan amount, the person’s credit score, the applicant’s income, existing relationship with the bank, etc.

Q. How much interest is charged by the bank in case I opt for a personal loan balance transfer to HDFC bank?

The personal loan balance transfer interest rate starts as low as 10.40% p.a. However, specific interest rate depends upon several factors like the loan amount, tenure, etc.

Q. Is HDFC personal loan interest rate fixed or floating?

HDFC offers personal loans at a fixed rate of interest, that is, the interest rate remains the same or unchanged throughout the loan tenure.

Q. My credit score is 660. Can I get the lowest interest rate?

A credit score of 750 or higher is generally considered to be a good score and may help you avail a lower rate of interest on your personal loan. However, a score lower than that usually indicates a lower creditworthiness and higher risk for the lender which may in turn increase the personal loan interest rate offered to you.